Appellate Tribunal orders interest payment on delayed refund under Section 11BB

M/s Champion Flavours, Meerut Versus Commissioner CGST, Jammu

M/s Champion Flavours, Meerut Versus Commissioner CGST, Jammu - TMI Issues:
The appeal involves the rejection of interest on delayed payment of refund under Section 11BB of the Act.

Issue 1: Refund Claim and Delayed Payment of Refund
The appellant, engaged in manufacturing, filed a refund claim on 28.10.2010, which was finally sanctioned on 31.08.2020. The appellant sought interest on the delayed payment of the refund claim, which was not granted. The Ld. Counsel argued that interest is payable after 3 months from the date of receipt of the application, citing legal precedents to support the claim. The Tribunal found the appellant entitled to interest on delayed payment from 27.01.2011 until the date of credit, at the rate of 6% as per the statute. The appeal was allowed, directing the original authority to compute and pay the interest within 2 months from the date of the order.

Judgment Summary:
The Appellate Tribunal CESTAT Chandigarh heard the appeal against the impugned order rejecting interest on delayed payment of refund under Section 11BB of the Act. The appellant, engaged in manufacturing, filed a refund claim on 28.10.2010, which was sanctioned on 31.08.2020 without interest. The Ld. Counsel argued for interest based on legal provisions and precedents. The Tribunal, considering the submissions and legal precedents, found the appellant entitled to interest on the delayed refund payment from 27.01.2011 until the credit date at a rate of 6%. The appeal was allowed, directing the computation and payment of interest within 2 months from the order date.